What Consensus Mechanism Is an Alternative to Proof-of-Work (PoW)?
Proof-of-Stake (PoS) is a major alternative to Proof-of-Work. In PoS, block validation is determined by the amount of cryptocurrency a validator holds and is willing to "stake" as collateral, rather than by computational power.
This mechanism changes the attack vector; a 51% attack in PoS would require an attacker to acquire 51% of the total staked coin supply, making it an economic attack rather than a computational one. PoS is generally considered more energy-efficient.
Glossar
Consensus Mechanism
Validation ⎊ Consensus mechanisms, within cryptocurrency, represent the procedural logic ensuring state agreement across a distributed network, critical for preventing double-spending and maintaining data integrity; their design directly impacts network security and scalability, influencing transaction throughput and finality times, particularly relevant in decentralized finance applications.
Capital Expenditure
Allocation ⎊ Capital expenditure within cryptocurrency, options trading, and financial derivatives represents the strategic commitment of resources toward acquiring, upgrading, and maintaining the infrastructure necessary for participation and innovation.
Block Validation
Attestation ⎊ Block validation, within cryptocurrency networks, represents the process by which network participants confirm the legitimacy of newly proposed blocks of transactions, ensuring data integrity and preventing double-spending scenarios.
Alternative to Proof-of-Work
Delegation ⎊ Alternative to Proof-of-Work systems increasingly involve delegation of validation responsibilities, shifting from a purely distributed model to one where stakeholders entrust their stake to specialized validators.